NREP, a leading real estate investor in the Nordic countries, wants to strongly mark its presence on the Polish warehouse and residential market. The Scandinavian investor, known for its innovative and responsible approach to its projects, will soon open an office in Warsaw. NREP has just finalized the purchase of a logistics portfolio of 130,000 sqm and over 1,000 new apartments in Warsaw.
“After 15 years of real estate presence in the Nordic countries, we have decided to enter other markets, and Poland will be the first non-Nordic country where NREP will invest. In our market philosophy, customer orientation and sustainable approach to real estate, including the use of environmental solutions, are key. We believe that these values will be our significant advantage also for Polish partners and clients,” said Claus Mathisen, CEO and partner of NREP.
“At the same time, a key element in our business approach is having strong local teams that share our philosophy and ethics. An important step in the implementation of this strategy will be the establishment of NREP’s Warsaw office, which should be up and running in the coming weeks and reach a headcount of 8-10 people by the end of 2021,” adds NREP’s CEO.
In the residential sector, the company intends to offer rental apartments, focusing in the initial phase on smaller, modern units designed for small households such as young professionals, singles or couples without children. In its first residential transaction on the Polish market, it will take over 1,000 apartments from the offer of Finnish developer YIT. Over time, it does not rule out taking on high quality multi-family residential buildings and ambitious development projects. NREP will also focus on logistics in Poland. Logicenters, a platform specialized in the warehouse segment, has 1.5 million square meters across Scandinavia and offers customer-oriented and sustainable logistics properties.
“We are the largest pan-Nordic provider of modern logistics facilities, and the Polish market is one of the key ones in Europe – in addition, it is growing four times faster than, for example, Sweden. Poland is sometimes described as the European economic tiger, with low unemployment and rising wages. However, the quality and supply of real estate lags behind its impressive growth rates. Therefore, we see an opportunity to introduce a market approach characteristic for NREP and create value for all stakeholders,” Claus Mathisen explains the decision to enter the Polish market.
Last year NREP became famous for raising, despite the ongoing pandemic, EUR 2 billion for new investments in the “Nordic Strategies Fund IV”, which invests in residential real estate for rent, nursing homes, offices, and modern logistics in Scandinavian countries, and it is this fund that is behind the acquisition of shares of the Biuro Inwestycji Kapitałowych (BIK). In addition, in March this year, NREP raised a further EUR 900 million for its new semi-open fund ‘NREP Income+’, which aims to make long-term investments in residential buildings, offices, modern logistics facilities and social infrastructure.
As the representatives of the investor from Scandinavia emphasize, Poland is very well assessed in terms of prospects and macroeconomic performance. In Poland there are 5 out of 20 fastest developing cities in the European Union. Warsaw in turn has a place in the top 10 largest European cities. As an example of changing trends in demand for modern apartments and space, the investor cites Helsinki, where new single-person households account for as much as 52 percent of all new units. According to data for Poland at the end of 2018, the share of single-person households in the total structure of premises was 24.1 percent, and only in Cyprus, Slovakia and Portugal was it lower. In contrast, the EU average was 32.9 percent. .
“Our ambition is to make real estate more innovative, environmentally friendly and resident-friendly. We note that supply in the Polish real estate market is lagging behind high and strong economic growth. Additionally, demographic processes will further increase this dissonance. Today, in Finland, Sweden and Denmark, about 30-40 percent of people rent, while in Poland this percentage is only 15. We believe that this trend will also increase in Poland. We want to help make it a transformation in which we do not forget about the customers to whom this offer will be addressed. Three out of four houses in Poland today were built before 1989. I am convinced that in Poland, the demand for high quality homes with a greater emphasis on customer needs and ecological solutions will gradually grow in the coming years, especially in the area of private renting,” adds the CEO of NREP.
NREP as a long-term investor and fund manager has been present on the Nordic real estate market since 2005. Its portfolio includes warehouse, residential, nursing homes and office properties. NREP is also a provider of technological solutions supporting the real estate market. The company is distinguished by innovation and a sustainable and responsible approach to environmental issues, including a focus on using upcycled materials in its properties. NREP was the first in the world to create a building made of 100% recycled concrete. NREP entered Poland through the acquisition of shares in Biuro Inwestycji Kapitałowych. Logicenters, the specialized logistics arm of NREP, owns 1.5 million square meters across Scandinavia and offers customer-focused and sustainable logistics properties. NREP in Poland aims to have a presence in both the warehouse and residential markets. NREP currently has more than 400 employees in seven countries.
